Repositioning North East Scotland as the Net Zero Energy Capital of Europe

Welcome to the very first quarterly update from ETZ Ltd, which highlights the wide range of activity ETZ Ltd is undertaking to spearhead the North East of Scotland’s energy transition ambition. Our aim is to harness the unrivalled critical mass in the skills, innovation, infrastructure, and financial capital developed from a world-class oil and gas industry to ensure we maximise the significant opportunity ahead of us and remain at the vanguard of developing new and green energies.

We want to protect and create as many jobs as possible, ensuring a sustainable and vibrant future for the region and the people who live and work here. Our organisation has been operational for a little over two years, and we have made significant progress on our dual areas of focus both as a regional catalyst for energy transition and the delivery of the Energy Transition Zone. This region is one of the most attractive locations in the world to accelerate low-carbon technologies, and our focus at ETZ Ltd is to unlock the opportunity to its fullest potential.

Accelerating Toward Net Zero

The delivery of a successful energy transition will take investment in strategic infrastructure, technology and innovation, supply chain development and skills – and that’s exactly what ETZ Ltd has been set up to do. As the region's energy transition catalyst, we utilise long-established connections across the globe, share knowledge and expertise. Our experienced team are taking forward a range of initiatives and programmes designed to make individuals and organisations accelerate their own energy transition ambitions.

To date, we have engaged with well over 500 companies across our supply chain initiatives so they can further their own energy transition ambitions, and we continue to deliver them.

Maggie McGinlay, Chief Executive, ETZ Ltd

ETZ Challenge Fund - Supporting high-growth potential companies accelerate energy transition

Specifically targeting companies located in Aberdeen City, Aberdeenshire, and Moray, ETZ Ltd’s Energy Transition Supply Chain Pathway and Challenge Fund, supported by the Scottish Government Just Transition Fund, will help companies enter new energy markets, identify capital requirements, and deliver capital investment grants to support the energy supply chain in realising low carbon sector opportunities.

Grant funding of between ￡50k and ￡250k from an overall tranche of over ￡2million will be awarded to accelerate innovation and market entry, support business growth, and create new jobs in the energy transition into the low-carbon market. The first tranche was announced following a successful initial pilot of the programme, which saw the allocation of ￡1m to support 11 companies. The latest round has recently closed for application, with further funding opportunities available later in the year.

“This fund will ultimately accelerate the development of new industry-related facilities, new equipment and existing infrastructure upgrades, including digital infrastructure, to drive innovation and market entry and therefore support company growth and creates sustainable jobs.”

ETZ Jobs & Skills Plan - Providing people with skills to capitalise on energy transition

In April, we published the ETZ Jobs & Skills plan, in recognition of the importance of creating and retaining sustainable energy jobs, as well as delivering a just transition for local communities. Working with our partners, skills-related initiatives will engage with schools, further education and higher education, and industry partners to provide accessible and inclusive training at all levels.

“Our dedicated Jobs & Skills Plan highlights our unwavering commitment to equipping North East Scotland's workforce with the skills to maximise employment opportunities. We are prioritising the creation and retention of sustainable energy jobs, as well as delivering a just transition for local communities.”

Taking ETZ on the road...

We have been showcasing ETZ Ltd at some of the biggest and most prominent energy conferences in the country.

These include The UK's Hydrogen and Fuel Cell Conference, All Energy & Decarbonise, the largest low-carbon energy and renewable supply chain event in the UK, and the Energy Exports Conference. During these events, we had the chance to highlight ETZ Ltd's range of ongoing activities and the North East of Scotland's position as one of the most attractive locations in Europe for investment in low-carbon technologies.

ETZ Ltd welcomes Scotland’s First Minister & UK Secretary of State to Aberdeen

ETZ Ltd is a private sector-led and not-for-profit company enabled by significant funding from the private sector, Opportunity North East and both the Scottish and UK Governments, which is tacit recognition of how important both administrations view this region in terms of its role in delivering accelerated energy transition.

In May our Chairman, Sir Ian Wood, and Chief Executive, Maggie McGinlay, met First Minister, Humza Yousaf MSP, and Secretary of State for Levelling Up, Michael Gove MP, in Aberdeen to discuss ETZ Ltd’s ongoing activity and the further support required from both Governments to ensure the North East of Scotland retains its pivotal role in securing greater domestic energy security for the long term. The visit of the First Minister marked his second official visit in office, and he took the opportunity to reiterate his Government’s ambition to reposition the region as the Net Zero Capital of Europe.

Delivering the largest dedicated energy transition complex in Scotland

ETZ Ltd continues to take forward the phased development of a unique Energy Transition Zone adjacent to the now operational ￡400 million deep water, non-tidal development at Aberdeen South Harbour and, in doing so, create 2,500 direct jobs and a further 10,000 in energy transition related jobs across the region.

A dedicated masterplan process covering the entirety of the Zone has been progressed, and now a comprehensive investment programme is underway to deliver market-ready, net zero exemplar’ properties and development sites, subject to planning, for high-value manufacturing and the wider energy transition supply chain.

This will include the creation of specialist campuses for Marine Development, Offshore Wind, Hydrogen, Innovation, and Skills - each of which will be anchored by a transformational project to catalyse further investment in each sector. The Zone will provide businesses with the unique opportunity to invest in the largest dedicated energy transition complex in Scotland. High-quality amenities, including green spaces, active travel and a green energy network, ensure that the zone will be an exemplar, low-carbon development and the perfect location for future net zero investment.

Community & Energy Coast

ETZ Ltd has taken forward an extensive programme of engagement and dialogue with the local community through a dedicated masterplan exercise covering the Energy Transition Zone. Last November, we hosted the third community consultation event at Torry Free United Church providing local citizens the opportunity to offer input and suggestions on the emerging proposals. We are grateful to local citizens for their continued engagement and recognise the strength of sentiment as to how important accessible green public space, and biodiverse areas are for the people of Torry, particularly the walkways, wetlands and habitats at St Fittick’s Park.

We have listened carefully to these concerns and have sought to respond positively by proposing a range of opportunities and initiatives, including substantial enhancement of biodiversity in green spaces, leisure facilities and green network links. We will be opening the doors of the Energy Transition Skills Hub in the Altens Industrial Estate next year, which will be accessible to the local community and includes a mobile skills lab to extend the hub’s reach to schools in the region. As our plans develop, we will be hosting two further public consultation events and continuing extensive engagement prior to submission of any future planning application. These events will be hosted again at the Tory Free United Church on 29 June and 3 August from 3 -8 pm, and we encourage all local residents to attend.

Our Masterplan proposes:

Energy Transition Zone XR 360° Interactive Tour

We have been working in partnership with Scotland Development International (SDI) to create an interactive 'extended reality' video allowing viewers to view the Zone and its unique campus model in its entirety. The video has been cascaded to the SDI Inward Investment Team (Lead Generation and Business Development teams), across the organisation’s field offices in 24 countries across the world. Immerse yourself in the experience by accessing the SDI YouTube channel.

Trojan Energy co-locates headquarters in Zone

We were delighted to welcome Trojan Energy, one of Scotland’s fastest-growing cleantech businesses, as tenants of the Zone. ETZ Ltd is providing bespoke accommodation for Trojan within the Zone’s W-Zero-1 building (formerly Richard Irvin House). The firm currently employs 45 people at locations across the UK and expects to increase its headcount to 100 by this time next year. They intend to double their Aberdeen workforce to at least 50 in the same period, along with plans to raise ￡20 million through its latest funding round in 2023.

bp & Scottish Enterprise pledge funding for Scotland's First Energy Incubator & Scale Up Hub

ETZ Ltd secured ￡1.25m from global energy firm bp and ￡2m support from Scotland’s national economic development agency, Scottish Enterprise, to begin construction of Scotland’s first Energy Incubator and Scale Up Hub (EISH). Located at Hareness Road in Altens Industrial Estate, the Hub will be the transformational anchor project of the Innovation Campus and comprise 3000 sqm of flexible industrial and collaboration space. It will foster manufacturing, supply chain company building, technology research and development and commercialisation alongside targeted business support to drive entrepreneurship, innovation and growth. Subject to planning permission, work is expected to begin on the facility in Summer 2023, with opening planned for Summer 2024.